NTPC Green Energy IPO: Financials you need to know

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NTPC Green Energy IPO: The dates of NTPC Green Energy Ltd.’s initial public offering (IPO) are November 19–22. The IPO is a new issuance of equity shares worth ₹10,000 crore that does not include an offer-for-sale component, with a price range of ₹102 to ₹108 per share. The following are the main advantages, dangers, tactics, and financials you should be aware of when the first share sale begins next week.

Strengths of the NTPC Green Energy IPO

• NTPC Limited, the company that promotes NTPC Green Energy, has extensive expertise carrying out large-scale projects and maintains enduring connections with suppliers and offtakers.

It has a portfolio of 16,896 MW of wind and solar projects as of September 30, 2024; it has a skilled staff to manage, acquire, and maintain renewable energy projects; and its rising revenues and credit ratings allow for a low cost of capital used.

• A skilled management group

Risks of the NTPC Green Energy IPO

• In the fiscal year 2023–2024, the top five offtakers accounted for almost 87% of the company’s income, with the biggest offtaker alone providing close to 50%. Any client loss might have an impact on the company.

• The business relies on outside vendors to provide its needs for equipment, materials, and components. A delay in timely delivery may have an effect on money and company.

•The majority of NTPC Green Energy’s operational renewable projects in the fiscal year 2023–2024 (FY24) and the six months that ended on September 30, 2024, were located in Rajasthan. Business may be impacted by any political, social, or economic upheaval in the state.The firm has incurred significant debt, and failure to make payments might have a negative impact on its financial and operational health.Due to the seasonal nature of the company, operational results may sometimes change.

Strategies for the NTPC Green Energy IPO

• By use of smart joint ventures and careful tendering, increase the project pipeline.
• Improve project execution to keep costs under control and maximize project output; concentrate on novel energy solutions such as green hydrogen, green chemicals, and battery storage.

The issue’s book-running lead managers are HDFC Bank Ltd., Nuvama Wealth Management Ltd., IDBI Capital Market Services Ltd., and IIFL Securities Ltd. Kfin Technologies is the registrar.